Slide 1: First Quarter 2021 Earnings Review
First Quarter 2021 Earnings Review THURSDAY, APRIL 22, 2021
Slide 2: Cautionary Statement
Cautionary Statement This document contains forward-looking statements about Whirlpool Corporation and its consolidated subsidiaries ("Whirlpool") that speak only as of this date. Whirlpool disclaims any obligation to update these statements. Forward-looking statements in this document may include,
Slide 3: Global Overview
Global Overview Marc Bitzer CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Slide 4: Executive Summary
Executive Summary ▪ Faced with increased component shortages (semiconductors and resins) and significant inflationary pressures... ▪ ...we responded with early and decisive actions to protect margins and product availability: ○ Announced (and partially implemented) cost-based price increases of 5-12%
Slide 5: First-Quarter Results Highlights
First-Quarter Results Highlights PROFITABLE GROWTH Net Sales YoY Change ▪ Revenue growth of 24% driven by sustained consumer demand and cost-based pricing actions $5.4B 23.9% (+24.2% ex-currency) ▪ Expanded EBIT margin(1) by 620 bps to 12.4%, overcoming 225 bps of cost MARGIN EXPANSION inflation Ongo
Slide 6: Substantial Margin Expansion
Substantial Margin Expansion (Approximate impact) Q1 2020 Ongoing EBIT Margin(5) 6.2% Price/Mix +5.75 Net Cost* +3.75 Raw Material Inflation -2.25 Marketing & Technology Investments -0.50 Currency -0.75 2021 Ongoing EBIT Margin 12.4% *Inclusive of Fixed Cost Takeout, Ongoing Cost Productivity (Includ
Slide 7: Regional Overview
Regional Overview Jim Peters EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Slide 8: North America First-Quarter Results
North America First-Quarter Results ▪ Significant top-line growth driven by strong consumer demand ▪ Record EBIT performance driven by execution of go-to-market initiatives ▪ Modest sequential share gains 8
Slide 9: EMEA First-Quarter Results
EMEA First-Quarter Results ▪ Revenue growth, excluding currency of 25%, as volume growth outpaced industry demand ▪ Significant EBIT improvement (+$36M) driven by top-line growth and cost actions ▪ Positive Q1 EBIT demonstrates effectiveness of ongoing strategic actions 9
Slide 10: Latin America First-Quarter Results
Latin America First-Quarter Results ▪ Revenue growth, excluding currency, of 35% driven by strong industry growth in Brazil and Mexico ▪ EBIT growth driven by increased demand and strong execution of cost-based pricing actions ▪ Strong EBIT margin performance despite currency headwinds in Brazil and
Slide 11: Asia First-Quarter Results
Asia First-Quarter Results ▪ Strong demand across the region with share gains in China ▪ EBIT expansion in India and China driven by go-to-market and cost productivity actions ▪ Uncertainty remains in India as COVID-19 cases surge 11
Slide 12: 2021 Guidance
2021 Guidance Marc Bitzer Jim Peters CHAIRMAN AND EXECUTIVE VICE PRESIDENT CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER
Slide 13: Updated 2021 Guidance
Updated 2021 Guidance PROFITABLE GROWTH MARGIN EXPANSION CASH CONVERSION LONG-TERM ~3% ~10% 6%+ GOALS ONGOING EARNINGS BEFORE INTEREST ANNUAL ORGANIC NET SALES GROWTH FREE CASH FLOW AS % OF NET SALES AND TAX, % OF NET SALES 2021 Net Sales YoY Change Ongoing EBIT YoY Change Free FCF as % of GUIDANCE*
Slide 14: Full-Year 2021 Ongoing EBIT Margin Guidance
Full-Year 2021 Ongoing EBIT Margin(1) Guidance (Approximate impact) Previous Current Comments 2020 Ongoing EBIT Margin(5) 9.0% 9.0% • Primarily previously announced cost-based price increases coupled with the disciplined execution of go-to-market actions Price/Mix +1.00 +6.00 • Product launches and
Slide 15: 2021 Regional Guidance
2021 Regional Guidance Industry EBIT % Previous Current Previous Current North 4 - 6% 6%+ 15%+ 15.5%+ America Europe, Middle East 2 - 4% unchanged 2.5%+ unchanged & Africa Latin 2 - 4% unchanged 7%+ ~8% America Asia 6 - 8% unchanged 2%+ 5%+* Total ~4% 5% 9%+ ~10% *Assumes the partial tender offer by
Slide 16: 2021 Free Cash Flow Guidance
2021 Free Cash Flow(2) Guidance (Approximate impact in millions) 2020 2021 Comments Previous Current Cash Earnings and Other Operating • Driven by increased EBIT growth $1,954 $1,950 $2,200 Items • Innovation and digital transformation Capital Expenditures $(410) $(600) $(600) investments Working Ca
Slide 17: 2021 Capital Allocation Strategy
2021 Capital Allocation Strategy 1. Fund Innovation and Growth Target/Update Capital Expenditure Invest ~3% of net sales Research and Development Invest ~3% of net sales Mergers & Acquisitions Pursue opportunistic M&A with high ROIC 2. Return to Shareholders Target/Update Dividends ~30% of trailing
Slide 18: Executive Summary
Executive Summary ▪ Decisive actions in place to address volatile macro environment ▪ Q1 record results continue to demonstrate our track record of operational excellence ▪ Increased full-year guidance reflects our confidence in the actions in place ▪ Delivering on our commitment to return cash to sha
Slide 19: Closing Remarks and Q&A
Closing Remarks and Q&A
Slide 20: Whirlpool
Whirlpool Whirlpool! KitchenAid’ MAYTAG (j)inpesit PEEamgd Consul SRASTEMP AMANA JENNAIZV Giauknecht acros? DIQUARE *Whirlpool Corporation ownership of the Hotpoint brand in EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas. cl
Slide 21: Appendix
Appendix 21
Slide 22: Key Assumptions – Guidance
Key Assumptions – Guidance Income Statement FY2020A FY2021E Raw Material (Inflation) / Deflation $250M ~$(1,000)M Restructuring Costs $288M ~$100M Interest Expense $189M ~$190M Adjusted Effective Tax Rate 26.3% 24-26% Weighted-Average Diluted Shares Outstanding 63.3M 63.5M* Cash Flow Statement FY2020A
Slide 23: Interest and Sundry (Income) Expense
Interest and Sundry (Income) Expense Q1 (Approximate impact in millions) 2020 2021 Comments Net Foreign Exchange $(7) $(11) ● Includes foreign exchange and hedge (gain)/loss Interest (Income)/Other 6 (15) ● Primarily interest income Interest and Sundry (Income) Expense $(1) $(26) Note: Numbers may n
Slide 24: Restructuring Cash Outlays
Restructuring Cash Outlays (Approximate impact in millions) 2020 2021 Comments COVID-19 related actions $115 $105 Naples closure 24 70 • Naples, Italy manufacturing facility Other initiatives 57 50 • Primarily previous year actions Total $196 ~$225 24
Slide 25: Free Cash Flow Other Items
Free Cash Flow(2) Other Items (Approximate impact in millions) 2020 2021 Impact Comments Claim Settlement $(60) - $60 • Trade customer insolvency claim in EMEA • EMEA-produced product warranty recall Washer Recall (50) - 50 expense • Primarily cash tax credits gained through the Cash Tax Credits 200
Slide 26: Use of Non-GAAP Financial Measures and GAAP Accounting Changes
Use of Non-GAAP Financial Measures and GAAP Accounting Changes This presentation includes certain non-GAAP financial measures, some of which we refer to as “ongoing” (1) measures: Ongoing earnings per diluted share, earnings before interest and taxes (EBIT), EBIT margin, ongoing EBIT, and ongoing EBI